McDonald’s will sell Krispy Kreme donuts in its latest menu experiment

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McDonald’s will sell Cream cheese Donuts are at exclusive restaurants for the first time this month.

Starting October 26, the fast-food giant will sell Krispy Kreme donuts at nine locations in the Louisville, Kentucky area as part of a test. McDonald’s said the test will help it learn more about how teaming up with Krispy Kreme will impact their operations.

McDonald’s customers will be able to order the original glazed, chocolate-frosted sprinkles and raspberry-filled donuts individually or in six-packs. Joining McDonald’s locations will sell the donuts all day, but the treats will not be available for delivery.

According to McDonald’s, Krispy Kreme will deliver fresh donuts to McDonald’s restaurants daily. The donut chain uses a “hub and spoke” pattern that allows it to make and dispense treats efficiently. Production centers, which are shops or donut factories, ship freshly made donuts to retail outlets such as grocery stores and gas stations each day.

The test comes as consumers reduce restaurant visits as rising inflation puts pressure on budgets. Chains are experimenting with new menu items and promotions to bring customers back to restaurants.

In the first half of the year, McDonald’s said lower-income consumers in the United States were spending less at its restaurants. On the other hand, Krispy Kreme CEO Mike Tattersfield said the chain has strong pricing power as customers are willing to splurge on affordable treats like fresh doughnuts.

In the second quarter, Krispy Kreme reported 7.5% revenue growth for its US and Canada division. However, it lowered its full-year forecast for earnings and revenue, with a stronger dollar and weaker performance from US manufacturing hubs that didn’t deliver to other locations.

It’s not the first time fast food chains have turned to donuts to attract customers. In 2020, KFC launched a nationwide “Fried Chicken and Donut” sandwich after the tests garnered social media attention.

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